Just in case you missed it, earlier this week there was a story filed in the Washington Post that was virtually groundbreaking — for two reasons.First, it was a positive Trump trade story. And second, it was a positive Trump trade story emanating from the World Bank — of all places.I think it’s fair to say both the Washington Post and the World Bank are not huge Trump supporters on trade, the economy, and almost anything else.So, I’m going to step in and reassert my claim that President Trump is actually a free trader.Upon hearing this, many of you may be incredulous. I’m going to stick to my guns, though.Mr. Trump’s tough tariff diplomacy is — in his mind — the best possible tactic to lower world trade barriers and fix the broken international trading system.Now, the economists at the World Bank effectively endorsed Mr. Trump’s reciprocal trade policy as they called for America’s trading partners to sharply reduce their import taxes to more closely match the lower tariffs imposed by Washington.Now, the Post story goes on to narrate that the President says it’s unfair that American companies face higher trade barriers in Europe, Japan, and Communist China than foreign businesses face when they sell to the American market.The World Bank’s top economists are calling for an across the board reduction in tariffs.Well… bravo.Even if a globalist left-of-center gang at the World Bank has to do it, at least there’s one large official institution out there stating the obvious.Foreign countries have denied American businesses market access with high tariff and non-tariff barriers.The world trading system’s been broken for a long time. The World Trade Organization is not going to fix it.The American heartland has been badly damaged by this outdated system. And Mr. Trump has promised to do his best to fix the problem.And, then, the Post article goes on to quote Mr. Trump back in February, and this is great: “if they charge us, we charge them. If they’re at 25% we’re at 25%. If they’re at 10%, we’re at 10%. And if they are much higher than 25%, that’s what we are too.”In other words: reciprocity.The essence of this — and I’ve heard President Trump say this many times — the essence of his position is to reduce trade barriers of all kinds.And that is what free trade should be all about.Sometimes the tariff tactics used by the President don’t much sound like free trade.Well, it takes what it takes.Foreign countries like China have been punishing our businesses and working people for years with high tariffs and other regulatory barriers.Mr. Trump’s not going to stand by and let that happen.If you look carefully at the last few months, even though his original shock and awe “Liberation Day” announcement of reciprocal tariff rates caused great fear and trembling in financial markets and world capitals, the reality was that exporting countries with unfair trading practices have been coming to Trump to make a deal.And now dealmaking upon our top 20 or so trading partners looms closer and closer.And that dealmaking is going to bring down tariffs.And lower tariffs and lower trade barriers will generate a far freer world trading system than anything we’ve seen in decades.As Treasury man Scott Bessent said, Mr. Trump’s trade policies have fostered a new TDS — tariff derangement syndrome — but they shouldn’t have.Our economy is doing fine, inflation is actually falling, financial markets have recovered.Which is exactly what free trade is supposed to do, isn’t it?From Mr. Kudlow’s broadcast on Fox Business Network.
